Review the information on revenue cycle monitors and address the following issues:

Identify the phases of the revenue management life cycle and the activities included in each phase.    

Discuss the interrelationships that exist among the revenue cycle activities in the different phases, and the impact they can have for the organization’s financial health.

Identify tools and techniques used to improve health care finance and discuss the role technology plays in successful revenue cycle management.

Review two of the monitors and describe their purpose and how they “monitor” the finance health of an organization. Which monitors do you feel are the most important? Why? Support your answers.

The demand curve for labor:

A) slopes downward.

B) is based on the marginal revenue product of labor.

C) shows the amount of labor that will be demanded at any given wage.

D) all of the above.

Which of the following factors, in addition to income, might be considered by an individual deciding to enter a labor market?

A) Location.

B) Long-term gains.

C) Psychological rewards.

D) All of the above.

A decrease in the equilibrium wage rate and equilibrium quantity of workers in a labor market would be caused by:

A) a decrease in labor supply.

B) an increase in labor supply.

C) a decrease in labor demand.

D) an increase in labor demand.

The basic supply and demand model predicts that a decrease in labor demand will shift the demand curve to the:

A) left and reduce wages.

B) left and increase wages.

C) right and reduce wages.

D) right and increase wages.

If labor supply decreases and labor demand increases, we should expect that:

A) wages will increase.

B) wages will decrease.

C) employment will increase.

D) employment will decrease.

Which of the following would NOT cause a supply curve of labor to shift?

A) Demographic trends.

B) Changes in the wage rate.

C) Cyclical changes in economic conditions.

D) Changing expectations of future job prospects.

You are considering an investment of $500,000 at time zero for machinery and equipment. Annual revenue produced by the machinery is estimated to be $400,000 with annual operating costs of $140,000. The investment requires an initial investment of $200,000 for working capital at time zero. The working capital return is equal to the initial working capital investment at the end of the project (8th year). Salvage value of the machinery and equipment is expected to be zero. The minimum After Tax Cash Flow ROR (annual discount rate) is 12% and the effective income tax rate is 38%. 1.Calculate the ROR (Internal Rate of Return) for this investment project, assuming straight line depreciation. 2.Calculate the ROR (Internal Rate of Return) for this investment project, assuming declining balance depreciation with a declining rate of 15% per year over 8 years. Note: You will note that at the end of Year 8 the investment cost is not fully depreciated. 3. Calculate the ROR (Internal Rate of Return) for this investment project, using the 5 year MACRS schedule for depreciation (see Example 7-7). Note: There will be zero depreciation in Years 7 and 8 in this problem.

A new booster machine will cost $480,000. The anticipated increase in revenue will be $140,000/year for 5-years. Annual expenses will be $30,000/year for 5-years. The depreciable life is estimated to be 5-years and the salvage value will equal $35,000. Additional inventory necessary to run the machine will be $26,000. Initial training expenses are $20,000. Tax rate equals 40%.

 Find the NPV@10%.

 Find the IRR.

 Find the discounted payback and convert this into a percentage.

PART I

(a) Discuss in detail, with reference to the principles of IFRS 15 Revenue from Contracts with Customers, whether Lockdown Health Ltd should recognise the following elements of the revenue contract with Sanitize Ltd as separate performance obligations:

• the testing equipment; • the installation of testing equipment; and • the 12-month warranty.

(b) Assume for this section of the question that there are three separate performance obligations, namely the testing software, testing equipment and training services in the revenue contract with Sanitize Ltd.

Criticise the journal entry that was processed with regards to the allocation of the transaction price for revenue recognition to the separate performance obligations listed above, for the year ended 31 August 2020. Support your answer with calculations and amounts.

Communication skills: logical flow and conclusion

(c) Prepare the journal entries to be processed by Lockdown Health Ltd to account for the transaction with StayHome Ltd for the year ended 31 August 2020.

PART II

Prepare the journal entries in the financial statements of Telecon Ltd to account for all the journal entries arising from the contract with the South African National Defence Force for the year ended 31 August 2020.

Please note:

• Round off all amounts to the nearest Rand. • Journal narrations are not required. • Deferred tax journal entries are not required. • Ignore any Value Added Tax (VAT) implications. • Your answer must comply with International Financial Reporting Standards (IFRS).

1.

If the cost of investment is $1,500. The revenue earned during the next 6 years was $100, $200, $300, $400, $500 and $600. Calculate the payback period?
(a)
5
(b)
5.5
(c)
4.5
(d)
5.01

2.

The effect of increase in volatility of price of stock on value of ‘option’ (keeping other factors constant)?
(a)
Decrease in value of option.
(b)
Indeterminate from given information.
(c)
No effect.
(d)
Increase in value of option.

The owner of a movie theater company would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

(a)

Use α = 0.01 to test the hypotheses

for the model

y = β₀ + β₁x₁ + β₂x₂ + ε,

where

(A) Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

(B) Find the value of the test statistic. (Round your answer to two decimals places.)

p-value=

(C) Find the value of the test statistic. (Round your answer to two decimals places.)

p-value=

112 Marginal revenue can become negative for

Select one:

a. a. competitive firms but not for monopoly firms.

b. a. both competitive and monopoly firms.

c. a. neither competitive nor monopoly firms.

d. a. monopoly firms but not for competitive firms.

115This table shows a game played between two players, A and B. The payoffs are given in the table as (Payoff to A, Payoff to B).

1.    Which of the following statements is true regarding this game?

Select one:

a. a.  A has a dominant strategy, but B does not have a dominant strategy.

b. a.  B has a dominant strategy, but A does not have a dominant strategy.

c. a.  Both players have a dominant strategy.

d. a.  Neither player has a dominant strateg

You are considering an investment of $500,000 at time zero for machinery and equipment. Annual revenue produced by the machinery is estimated to be $400,000 with annual operating costs of $140,000. The investment requires an initial investment of $200,000 for working capital at time zero. The working capital return is equal to the initial working capital investment at the end of the project (8th year). Salvage value of the machinery and equipment is expected to be zero. The minimum After Tax Cash Flow ROR (annual discount rate) is 12% and the effective income tax rate is 38%.

Calculate the ROR (Internal Rate of Return) for this investment project, using the 5 year MACRS schedule for depreciation (see Example 7-7). Note: There will be zero depreciation in Years 7 and 8 in this problem.